Weekly Air Operations Update: Asia to Europe, US and Australia 06/12/24

General overview:  As the Christmas holiday approaches, the air freight market out of China remains highly active. All routes are overbooked, and air rates continue to rise.

Shanghai to London

• Airport operations are currently normal
• Hauliers are working as normal
• CZ cancelled the flights of 3rd, 6th, 7th, 10th, 13th and 14th December ex CAN to STN
• CK cancelled every Thursday flight ex SZX to LHR
• Weather is normal
• Space is very tight
• Air rates are increasing

Shanghai to New York

• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• Weather is normal
• Space is very tight
• Air rates are increasing

Shanghai to Los Angeles

• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• Weather is normal
• Space is very tight
• Air rates are increasing

Shanghai to Frankfurt

• Airport operations are currently normal
• Hauliers are working as normal
• CA has cancelled the flights on 3-7 December ex PVG to FRA
• Weather is normal
• Space is very tight
• Air rates are increasing

Shanghai to Melbourne

• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• Weather is normal
• Space is very tight
• Air rates are increasing

Shanghai to Sydney

• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• Weather is normal
• Space is very tight
• Air rates are increasing

Market intel

Pre-tariff rush and e-commerce demand to fuel a busy start to 2025 for air cargo

With the peak season at its peak, attention in the air cargo market is beginning to turn to the coming 12 months and many are predicting a busy start to the year for the industry despite recent developments.

There has been much discussion over recent weeks of the potential negative impact of higher tariffs placed on imports from China into the US and a clampdown by the world’s largest economy on the de minimus rules that have allowed a recent flood of e-commerce parcels.

However, freight forwarders CEVA and Dimerco remain bullish for at least the first few months of the year.

CEVA Logistics global air and ocean leader Jérôme Petit explained that any changes to the de minimus rules would take months to be implemented.

“The e-commerce trend is set to continue growing, maintaining strong demand and higher rates,” Petit explained.

“Any changes to this policy could impact air freight demand and rates. Even with potential changes, new policies take time to implement and affect the market. We might see effects in late third quarter of next year, meaning 2025 will likely still see strong airfreight markets.

“Despite potential changes in the US, e-commerce growth continues to rise in other regions with lower tax-free thresholds, suggesting continued strong demand for airfreight. In fact, Air China has already announced their rate increases.”

Source: Air Cargo News